MANILA, Philippines — The government may soon accept unsolicited proposals for the privatization of its various assets, particularly small ones, once the new rules are published and take effect, the Department of Finance (DOF) said.
Finance Undersecretary Catherine Fong said the new privatization guidelines have been approved but are still awaiting publication in the Official Gazette.
One key measure in the guidelines is the ability of individuals to make an unsolicited offer to a list of government assets that have been approved for privatization.
This, Fong said, would mostly involve around 28,000 real estate properties of varying sizes but are mostly “small” ones that involve around 200 square meters.
“It is tiny for the government to make an effort to market them. Besides, the government does not have a marketing arm,” Fong said.
“At least we just publish the list and anybody interested in those properties may make an offer,” Fong added.
Some of the pieces of real estate that are up for disposition already have informal settlers, who, Fong said, may bid for the property to make their ownership legal.
The unsolicited bids would still be up for challenge similar to a public-private partnership proposal, Fong said.
The finance official said they expect the guidelines to be published next month.
“A lot of these assets are in the provinces. We are looking into Filipinos buying their own home and properties,” Fong said.
Finance Secretary Ralph Recto said the change in the privatization guidelines is an “innovation” since it is the first time the government is allowing unsolicited proposals.
The finance department expects that the new rules would help the government in raising significant revenues, especially with the disposition of assets that do not have or bring value to the state anymore.
The amended rules would also include provisions on allowing the submission of negotiated sales, direct purchases by present occupants of the residential properties and accreditation of real estate brokers to assist in the sale of the properties.
Last year, Fong said the Privatization and Management Office (PMO), which is attached to the DOF, has been slow in the process of selling state assets.